Summary of Mingyue Optical Conference Call Company Overview - **Company**: Mingyue Optical - **Period**: First half of 2025 - **Total Revenue**: 399 million CNY, a year-on-year increase of 3.7% [2][3] - **Net Profit**: 95.51 million CNY, a year-on-year increase of 7.4% [2][3] Key Financial Highlights - **Revenue Breakdown**: - Q1 Revenue: 197 million CNY - Q2 Revenue: 202 million CNY - PMC Ultra Bright Series Growth: 32.4%, contributing 84% to total revenue [2][3] - **Cost Management**: - Management Expenses: 37.36 million CNY (down 16.2%) - Sales Expenses: 67.70 million CNY (down 8%) - R&D Expenses: 19.93 million CNY (up 35.5%) [4] Product Performance - **Core Products**: - Regular lens business grew by 5.4% year-on-year, driven by PMC Ultra Bright Series (55.8% of revenue) and new 1.74 series [2][5] - Sales of the Easy Control series reached 81.67 million CNY, up 7.32% [5] - 1.74 series sales increased by 258% year-on-year [5][12] Strategic Partnerships - **Collaboration with Xiaomi**: - Launched AI smart glasses, providing online and offline fitting services through over 400 stores [2][6] - Average price of smart glasses: 1999 CNY, with average lens price at 800 CNY [6] - **Partnership with Aier Eye Hospital**: - Comprehensive strategic cooperation to enhance brand and business collaboration [6] Market Trends and Challenges - **Industry Competition**: - Intense price competition in the defocus lens market, but Mingyue maintained stable average prices [8][9] - The defocus lens category still showed close to 20% growth despite competition [10] - **High Refractive Index Products**: - 1.74 series has limited competition, with Mingyue and a few others capable of producing high-quality products [12][13] Future Outlook - **Smart Glasses Market Potential**: - Smart glasses are expected to grow significantly, with a potential market of 10 million units if penetration reaches 5% [18] - **Innovation and Development**: - Continuous development of new products to meet market demands, including high-quality lenses and smart glasses [14][20] - **Channel Strategy**: - Focus on deepening channel relationships and enhancing service quality [16] Additional Insights - **Export Strategy**: - Export business remains a low priority, with plans to enhance brand presence internationally [17] - **Consumer Trends**: - Increasing preference for domestic products, with a positive reputation for local brands [13] This summary encapsulates the key points from the conference call, highlighting the financial performance, product developments, strategic partnerships, market trends, and future outlook for Mingyue Optical.